Chap. 118.

AN ACT to incorporate the Southold Savings
Bank.

Passed April 7th, 1858, three-fifths being present.

The People of the State of New York, represented in Senate and Assembly, do enact as follows:

SECTION 1. That Moses C. Cleveland, William H. Wells, Body corpoJohn S. Howell, Joseph H. Goldsmith, Rensselaer T. Gold-rate. smith, James E. Horton, Ezra L. Goldsmith, Nathaniel Corwin, Henry Hutting, Albert Albertson, Franklin H. Overton, Alvah S. Mulford, David L. Horton, Hutchinson H. Case, Theron B. Worth, Henry H. Terry, Israel Peck, Ira B. Tuthill, Henry Pike, Thomas J. Conklin, Jeremiah Goldsmith, and their successors, are constituted and created a body corporate and politic, by the name of "The Southold Savings Bank," and by that name shall have perpetual succession, and may sue and be sued in any court whatever; and said institution shall be located in Southold, Suffolk county.

§ 2. The real estate which it shall be lawful for the said corporation to purchase, hold and convey, shall be:

1. Such as shall or may be requisite for its immediate accommodation for the convenient transaction of its busi

ness.

be held.

2. Such as shall have been mortgaged to it in good faith, for money loaned in pursuance of the provisions of this act. 3. Such as shall have been purchased at sales upon judg- Real estate ments or decrees, obtained or rendered for money so loaned; and the said corporation shall not purchase, hold or convey real estate in any other case, or for any other purposes; and all such real estate as is described in the second and third subdivisions of this section, shall be sold by the said corporation within five years after the same shall be vested in it by purchase or otherwise; and the said corporation shall not, directly or indirectly, deal or trade in buying or selling any goods, wares or commodities whatever, except in cases where it is authorized to do so by the terms of this act, and

Trustees.

Trustees

vacancies,

&c.

except such personal property as may be required for its immediate accommodation for the convenient transaction of its business.

3. The trustees of said corporation shall not, as such, directly or indirectly, receive any payment or emolument for their services.

§ 4. The business of said corporation shall be managed and directed by the said board of trustees, who shall elect from their number a president, two vice presidents, and such other officers as they may see fit; eight of the said trustees, of whom the president or one of the vice presidents shall be one, shall form a quorum for the transaction of business, and the affirmative vote of a majority of members present at a meeting, of the board and in all cases of at least seven members shall be requisite in making any order for or authorizing the investment of any moneys, or the sale or tranfer of any stock or securities belonging to the corporation, or the appointment of any officer receiving any salary therefrom.

§ 5. The persons named in the first section of this act how to all shall be the first trustees of the said corporation, and all vacancies by death, resignation or otherwise, in the office of trustee, shall be filled by the board by ballot, without unnecessary delay, and at least eleven votes shall be neces sary for the election of any trustee. The said trustees shall hold a regular meeting at least once in three months, to receive the reports of their officers as to the business and affairs of the corporation, and to transact such business as may be necessary; and any trustee omitting to attend the regular meetings of the board for nine months in succession, may thereupon, at the election of said board, be considered as having vacated his place, and a successor may be elected to fill the same. The supreme court may at any time, for due cause, remove any trustee, on proper notice to such trustee, and affording him an opportunity to be heard in his defense.

General business.

§ 6. The general business and object of the corporation hereby created, shall be to receive on deposit such sums of money as may be from time to time offered therefor, by tradesmen, clerks, mechanics, laborers, minors, servants, and others, and investing the same in the securities or stocks of the state of New York, or of the United States, or in the stocks or bonds of the counties of Suffolk, Queens and Kings, and cities of New York and Brooklyn, or of the town of Southold, authorized to be issued by the legislature of this

to borrow

state; or to loan the same on the securities of the said stocks or bonds, and also upon bonds secured by mortgage on improved, productive unincumbered real estate located within this state, worth at least double the amount to be secured thereby, exclusive of buildings; but no loan upon bond and mortgage, of a larger sum than five thousand dollars, shall be made, or in such other manner as is authorized by this act for the use, interest and advantage of the said depositors and their legal representatives. And the said corporation shall receive on deposit all sums of money which may be offered for the pur- Business. pose of being invested as aforesaid, but not to exceed the sum of five thousand dollars from any individual, which shall as soon as practicable be invested accordingly, and shall be repaid to such depositors when required, at such times, and with such interest, and under such regulations, as the board of trustees shall from time to time prescribe; which regulations shall be put up in some public and conspicuous place in the room where the business of said corporation shall be transacted, but shall not be altered so as to effect any deposit previously made. No president, vice president, trustee, Officers not officer or servant of said corporation, shall, directly or indi- money. rectly, borrow the funds of said corporation, or its deposits, or in any manner use the same, or any part thereof, except to pay necessary expenses under the direction of said board of trustees. All certificates or other evidences of deposit made by the proper officer of such corporation, shall be as binding on said corporation as if they were made under their common seal. It shall be the duty of the trustees of the said corporation, to regulate the rate of interest to be allowed to the depositors, so that they shall receive as near as possible a ratable portion of all the profits of the said corporation, after deducting all necessary expenses. In all cases of loans upon real estate, a sufficient bond, or other satisfactory personal security, shall be required of the borrower, and all the expenses of searches, examinations, and certificates of title, and of drawing, perfecting and recording papers, shall be paid by such borrower. And it shall be the Trustees to duty of the trustees of said corporation, to invest as soon as invest, &c. practicable, in public stocks or public securities, or in bonds and mortgages, as provided in this act, all sums received by them beyond an available fund of not exceeding twenty-five thousand dollars, which they may keep to meet the current payments of said corporation, and which may by them be

Power of trustees.

Subordinate officers.

Books to be open, &c.

Deposits.

Report to

kept on deposit, on interest or otherwise, in such available form as the trustees may direct.

§ 7. The board of trustees of the said corporation shall have power from time to time, to make, constitute, ordain, and establish such by-laws, rules and regulations as they shall judge proper for the election of their officers, for prescribing their respective functions, and the mode of discharging the same; for the regulations of the times of meetings of the officers and trustees, and generally for transacting, managing and directing the affairs of the corporation, provided such by-laws, rules and regulations are not repugnant to this act, to the constitution or laws of this state, or of the United States.

§ 8. The board of directors may appoint such subordinate officers and agents of the said corporation as they may deem necessary, who shall give such security respectively, for their fidelity and good conduct, as the board of trustees may from time to time require, and said board shall fix the salaries of such officers and agents.

§ 9. The books of the said corporation shall at all times during their hours of business, be open for inspection and examination to the comptroller of this state, and such other persons as the legislature or the comptroller shall designate or appoint as their agents for that purpose. Whenever any agent shall be appointed to make any such examination, he shall be paid for his services by such corporation such sum as the comptroller shall certify to be reasonable and just.

§ 10. Whenever any deposit shall be made by any minor, the trustees of said corporation may, at their discretion, pay to such depositor such sums as may be due to him or her, although no guardian shall have been appointed for such minor, or the guardian of such minor shall not have authorized the drawing of the same; and the check, receipt or acquittance of such minor, shall be as valid as if the same was executed by a guardian of such minor, or the said minor was of full age, if such deposit was made personally by said minor. And when any deposit shall be made by any female, being, or thereafter becoming a married woman, the said corporation, may, in their discretion, pay to such last mentioned depositor, such sum as may be due to such female, and the receipt or acquittance of such female shall be a sufficient discharge to said corporation.

§11. The board of trustees shall, on or before the twentybank super- fifth day of January, and twenty-fifth day of July, in each

intendent.

court, power

subject to

year, make such report to the bank superintendent as is required by law, and shall be subject to all the provisions and requirements of the act entitled "An act in relation to savings banks," passed March twentieth, eighteen hundred and fifty-seven. The misnomer of said corporation in any instrument shall not vitiate or impair the same, if it be sufficiently described to ascertain the intention of the parties. § 12. The supreme court may at any time, on the appli- supreme cation of any trustee or depositor in said corporation upon of. reasonable notice to said corporation, or to those who may be affected thereby, of such intended application, and on reasonable cause shown therefor, to the satisfaction of said court, appoint one or more persons to examine into the investments thereof, and its affairs and business generally. The books, papers and business of said corporation shall be Books to bo open and subject to the examination of such person or per- examinasons; and the trustees, officers and clerks thereof, or any other person, may be examined on oath by such person or persons, and the court may confer such further powers on the person or persons so appointed, as they may consider necessary for the more thorough and perfect examination of the affairs and business of said corporation. The said person or persons so appointed shall report the result of their investigation to the said court, who, if satisfied thereby that any officer, trustee or servant of said corporation has been guilty of any fraud or misconduct, may upon proper notice to such person and affording him an opportunity to be heard in his defense, remove such person or persons, and make such further order, and take such further measures for securing the funds and property of said corporation as the court shall deem expedient.

13. The corporation hereby created shall be subject to the provisions of the eighteenth chapter of the first part of the Revised Statutes, as far as the same are, or may be applicable.

14. This act shall take effect immediately.

tion.